Don’t Fall for these Auto Insurance Myths: Get the right information about Car Insurance

Car insurance is essential for protecting yourself, your vehicle, and others on the road. However, understanding car insurance can be daunting, especially with so many myths and misconceptions floating around.

In this article, we'll debunk common auto insurance myths and share useful insights to help you make informed decisions about your coverage.

Myth #1: Red cars cost more to insure

It's a common misconception that owning a red car will increase your insurance premiums. The truth is, the colour of your vehicle does not impact your insurance rate. Insurers consider factors like your vehicle’s make, model, year, and safety features, as well as your driving record, age, and location, when calculating your premium.

Myth #2: Parking tickets raise your insurance rate

While unpaid parking tickets can lead to complications, such as impounding your vehicle or affecting your ability to renew your registration, they do not directly impact your insurance rates. However, accumulating unpaid tickets could cause legal issues that might indirectly affect your insurance.

Myth #3: Two-door cars cost more to insure than four-door cars

Just because a car has two doors instead of four does not automatically mean it will cost more to insure. Your insurer will consider various factors, including the car's age, price, repair costs, theft rates, and previous claims history to calculate your rate. It's always best to get a specific quote for your vehicle rather than to rely on general assumptions.

Myth #4: Car insurance covers items stolen from your car

Standard auto insurance policies do not cover theft of personal items from your vehicle, such as phones, laptops, or wallets. These items are usually covered under your home or renter’s insurance policy.

Myth #5: No-fault insurance means no one is at fault

Some provinces operate on a "no-fault" system. However, a no-fault system doesn’t mean that no one is at fault in an accident. Instead, it means that each driver’s insurance covers their own injuries and damages, regardless of who caused the accident. However, fault is still determined, and if you’re found responsible, it can affect your premiums and future claims.

Myth #6: Your car insurance rate will stay the same if you move

Your location has a big impact on your car insurance rate. Factors like the area’s crime rate, traffic volume, and accident statistics are considered by insurers when calculating premiums. If you move to a different city or province, your rate could change to reflect the new area's risk factors.

Myth #7: Men always pay more for car insurance than women

While young male drivers generally pay more for car insurance due to higher risk statistics, this gap tends to narrow as drivers age. In many cases, gender is just one of many factors that insurers consider when setting rates. All drivers, regardless of gender, can receive rate adjustments based on their driving records, vehicle types, and other criteria.

Myth #8: Car insurance is cheaper to buy in the summer

There’s a common misbelief that car insurance rates fluctuate with the seasons, making it cheaper to buy insurance during warmer weather when car sales are higher. However, seasonal changes do not affect car insurance premiums. Insurance rates are regulated and approved by provincial insurance regulators.

Myth #9: You can present a screenshot or picture of your digital pink slip during a traffic stop

Certain provinces now accept digital proof of insurance, commonly known as a digital pink slip, during traffic stops. However, screenshots or photos of your digital pink slip will not be accepted. You must present either the original digital version or the paper copy issued by your insurance provider. Remember, maintaining accessible and valid proof of insurance is your responsibility. Ensure your device can adequately display the document, meaning your smartphone should be charged and its screen undamaged. It's also a good idea to carry the original paper copy as a backup.

Being well-informed about car insurance can empower you to make better decisions about your coverage. Don't let myths and misconceptions influence your choices. Instead, depend on accurate information and expert advice to ensure you're well-protected on the road.

Our team of experienced insurance brokers is here to help you find the right coverage for your needs and budget. If you're shopping for car insurance, call an Orbit insurance broker for a free personalized quote.

If you're a current Orbit customer and have questions about your current car insurance policy or want to discuss your coverage options, contact your broker today.